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FOR IMMEDIATE RELEASE |
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CONTACT: Ann
Collis |
State Rep. David
Levdansky |
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Levdansky bill would streamline fragmented tax collection process
Pennsylvania could save over $200 million with county-wide tax collection
HARRISBURG, June 27 – State Rep. David K. Levdansky, D-Allegheny/Washington, has introduced legislation that would require local wage taxes to be collected by county-wide earned income tax collection districts. These tax collection districts would not be a function of county government.
“Municipalities and school districts lose an estimated $237 million of uncollected earned income tax revenue each year because of complex and cumbersome practices and a lack of statewide standards,” Levdansky said. “That is not being fiscally responsible and it is unfair to taxpayers.
“The current earned income tax collection system is overly confusing to business and a burden to our residents,” Levdansky said. “This inefficient and cumbersome system leads to public frustration and an increase in the cost of doing business. Pennsylvania has a reputation of having the most fragmented local tax system in the nation, and we must change this perception by implementing a new method for collecting taxes.”
The Center for Local Government Services within the Department of Community and Economic Development released a report in 2004 outlining the current state of the earned income tax collection process. The report documented a fragmented and inefficient collection system of 560 wage tax collectors processing almost $2 billion in local taxes.
Levdansky said his legislation would consolidate the current earned income tax collection system into a more modernized, productive and streamlined system that consists of 66 county-wide earned income tax collection districts. Each earned income tax collection district would operate under uniform standards and adhere to uniform withholding and remittance requirements. These changes are necessary to promote accountability and enhance a more user-friendly collection system, he said.
“Improving enforcement and adopting uniform rules under a new earned income tax
collection system would reduce administrative burden for businesses and
alleviate taxpayer confusion,” Levdansky said. “The increased efficiency will
provide approximately $237 million in additional revenues for local governments
that is not presently collected.”
These changes are supported by the Greater Pittsburgh Chamber of Commerce, Greater Lehigh Valley Chamber of Commerce, Greater Philadelphia Chamber of Commerce, and Pennsylvania Chamber of Business and Industry.
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